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The Impact of IT convergence on development in the Asia- Pacific region

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Abstract

Emerging economies in the Asia-Pacific region are experiencing dramatic and accelerating changes in patterns of ownership and investment in their telecommunications sectors, as well as in convergence. This paper will highlight the significant dependence of emerging economies of the region on convergence of ICT and how these technologies create new networks. Evidence will be cited from China, the Asian Dragons and the near NIEs like Malaysia and Indonesia, to show how they have created one of the largest markets in the world for telecoms equipment and services. The Southeast Asian countries with their open economies and export oriented investment technologies have proved that such policies have generated trade surpluses and long-term growth despite their current financial crises. They still plan to continue ascribing priority in their investment patterns to converging ICT.

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... A integração de sistemas assim como a convergência tecnológica, vem aumentando cada vez mais as possibilidades de novos usos e diversificação no mercado de telecomunicações (HOBDAY; DAVIES; PRENCIPE, 2005;SHIN, 2009;DUYSTERS;HAGEDOORN, 1998). Como o mercado tecnológico vem buscando cada vez mais ampliar suas aplicações com produtos multiusos (Bundled Products), o que antes era um simples serviço de telefonia, hoje vem integrado com internet, televisão e outros simultaneamente (ARRUDA FILHO; CASSIA; MARINO, 2008;JUSSAWALLA, 1999;DANAHER;HARDIE;PUT-SIS JR., 2001;FUNK, 2004;HARRIS;BLAIR, 2006;KIM;LEE;KOH, 2005;MUKHERJEE;HOYER, 2001;NUNES;WILSON;KAMBIL, 2000;VRDOLJAK;VRDOLJAK;SKUGOR, 2000). ...
... Seguindo a literatura de marketing, verifica-se que a comunicação é um fator primordial para o desenvolvimento econômico e riqueza interna de uma sociedade industrializada (BRUSH; REXHA, 2007). Como a comunicação também está ligada aos processos tecnológicos que garantem a melhor eficiência e rapidez no desenvolvimento, propõe-se que: Avaliando o tráfego e seu comportamento de desenvolvimento no mercado, verifica-se que a internacionalização é um fator de crescimento do mercado interno, seja ele pela distribuição de produtos para novos países (COOPER; NEU; LEHMAN, 2003), seja pela distribuição e compartilhamento de conhecimento (Know-how) direto e indireto (DAVIES; HARDT; KELLY, 2004;GIO-KAS;PENTZAROPOULOS, 2008;ITU, 2007;JUSSAWALLA, 1999;NUMME-LA;SAARENKETO;PUUMALAINEN, 2004). Assim, propõe-se que: ...
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The development of the communications sector of a given country is related to the economic development of that country, and it is possible to demonstrate this connection statistically, as has been shown by research institutions such as the International Telecommunications Union (ITU). As this data is shown only in simple numerical form, and do not take into account interlinking factors, it is important to carry out research which evaluates the connection between relevant variables in the field. This work aims to analyze the factors of technological development which best describe the economic positioning of a country, connecting the usability of communication services with economic status. Data from 56 countries, chosen at random, were used. A datamining survey was carried out, which analyzed data already collected by institutions such as ITU, World Bank, etc. Each factor of usability, preference, and service analyzed is understood as a reflection of other services already developed, as some studies of the literature on this topic (ARRUDA FILHO; CASSIA; MARINO, 2008; CHERRY, 2007; DAVIES; HARDT; KELLY, 2004) argue that economic development of certain countries exists as a result of an increase in technological development, whereas others argue exactly the opposite. This paper presents these relationships in certain countries, chosen by the quantity of information available regarding their global development position, directly relating economic growth to communication technologies usage, such as telephone or internet. The paper collected data from two world sources from the mentioned sectors: International Telecommunications Union (ITU) and World Bank. Statistical techniques of linear regression and variance analysis were used for studying the data of 56 countries. It followed that the economic growth is directly related to the communication market growth, being the communication products factors of influence for the economic development.
... However, the convergence of policies and technologies as envisioned in the Communication Convergence Bill, 2000 cannot be achieved through gradual regulatory initiatives. Jussawalla (1999) demonstrated how ICT technological convergence was exploited by the Asia-Pacific countries (China, Malaysia, and Indonesia) to create one of the largest telecom services and equipment markets in the world. They adopted export friendly technologies, open economies, and export oriented investment to generate trade surpluses and chart out long-run growth trajectories. ...
Article
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The study presents an account of ICT policy convergence in India. It emphasises the increasing importance of policy convergence in facilitating technology-led growth. The study aims to unravel how the ICT policy convergence has fared, especially in wake of the ICT convergence in India. While the Telecom Regulatory Authority of India regulates telecom and a few aspects of the broadcasting sector, the IT sector largely remains unregulated. The ICT policy convergence has taken a back seat and continues to exist in India largely in a label form. The study adopts a qualitative case study and uses the policy process perspective as a conceptual framework. The time taken for the ICT policy reforms to catch up with technological changes is considerably long. The ICT convergence may help better understand various challenges, conflicts, and policy gaps and for synergising efforts made to address them. Keywords: information communication technology; ICT; policy convergence; Telecom Regulatory Authority of India; TRAI; policy process; regulatory governance; India.
... The impact of information and communication technologies on the economic growth and development was examined in several studies. These studies were performed in Taiwan (Wang, 1999) and China (Meng, Li, 2002) by the Organization for Economic Co-operation and Development (OECD) (Colecchia, Schreyer, 2002), and even in Great Britain (Dolton, Makepeace, 2004) or Asia (Jussawalla, 1999). ...
Conference Paper
Upheaval of economics competitiveness is the most important task of any state. One of determinant role belongs to economic policy. Georgia must have priorities not only in traditional fields but also in high quality, high-tech and high productive spheres as well. Only in this way is possible increase of competitive long-term, irreversible growth, boosting of revenues and salaries and improvement of population living conditions. We may name, for example, manufacturing of pharmaceutical products, telecommunication devices, gadgets and instalments. While the last period in a whole world has been especially boosted demands for preparations of plant origin. Accordingly has been increased demands for medicinal plants. The medicinal plants which plays one of the most important part in pharmacological research industry and in creation of medicinal preparations, at present are widely spread. Natural preparations represent significant part in a whole medicinal trade capacity. Georgia’s flora is rich with medicinal plants from ancient times. Georgia has ability to occupy honourable part in manufacturing-realization of medicinal plants in the international market. The state should promote production of ecologically pure preparations and drawing of investors with care in this field. Creation of competitive status of Georgia in a world market is highly depended upon competitive fields of the service sphere like hotels and restaurant businesses and insurance. One of the priorities of Georgia is its transit functions which together with natural-climatic conditions, intellectual recourses and other factors should provide business development in the state and upgrade of economics competitiveness.
... The impact of information and communication technologies on the economic growth and development was examined in several studies. These studies were performed in Taiwan (Wang, 1999) and China (Meng, Li, 2002) by the Organization for Economic Co-operation and Development (OECD) (Colecchia, Schreyer, 2002), and even in Great Britain (Dolton, Makepeace, 2004) or Asia (Jussawalla, 1999). ...
... Mobile phone (MP) technologies have become an important tool in facilitating markets' access thus promoting social and economic development (Jussawalla 1999;Scott et al. 2004Mobile phones have been instrumental in Africa and Asia, used by populations to access information on key sectors for instance; education, health, housing, employment, transport, and markets. Mobile phones also enable cashless mobile money transfers, that would otherwise be difficult or impossible (Chowdhury,Negassa and Torero 2005;Jensen 2007 andBhavnani et al, 2008;Aker and Mbiti, 2010;Sekabira, Bonabana and Asingwire 2012;Hoddinott, Rosegrant and Torero, 2013). ...
Thesis
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In the past two decades, since around 1995, mobile phone (MP) technologies have been widely adopted in developing countries – with the highest penetration rates in Sub-Saharan Africa, to levels of about 89% for adults. Previous research has shown MP use to enhance market access through information exchange and market price integration – availing timely updates on prices of inputs and outputs. Various applications of MP technologies, for instance mobile money (MM) services, where money is transferred electronically between the sender and the receiver using mobile phones, have also cropped up and are widely predicted to have life-enhancing effects for rural households. More specifically, the available literature has shown that MM services can contribute to welfare gains in smallholder farm households via several pathways. One important pathway for MM-related welfare gains are higher remittances received by MM users from relatives and friends. However, the impact of MP use and many of its key applications, like MM services, on several smallholder welfare aspects has barely been investigated. In particular, we are not aware of any studies that have analyzed the effects of MP use on gender equality and nutrition – two welfare dimensions that are of particular importance in the context of the United Nations’ Sustainable Development Goals (SDGs), that aim at ending hunger, achieving food security and improved nutrition, as well as attaining gender equality and women empowerment. Furthermore, there is yet no study examining the role of MM services and its several impact pathways on household welfare. These are significant gaps in the literature given that mobile phone technologies are so widely adopted among rural and urban households in the developing world. The impacts of MP technologies are predicted to be higher in developing countries than in the developed world, iii given that the infrastructure for other communication technologies and related services is much less developed in the developing world. We address these research gaps by using panel data from smallholder farm households in Uganda. Specifically, we examine the impact of MP use on household incomes, gender equality, and nutrition. Furthermore, the impact of MM services on household welfare and impact pathways are examined, especially focusing on agricultural marketing and off-farm economic activities. Using panel regression models, we find that MP use has positive influence on household income, gender equality, and dietary diversity. Gender-disaggregated data analysis shows that female MP use bears stronger influences on household incomes, gender equality, and nutrition than male MP use. Using simultaneous equations, we establish that female MP use’s positive nutrition effects are channeled through increased incomes and gender equality. These effects are due to lower transaction costs and better access to information through MP use. Furthermore, regression models show that the adoption of MM technology has contributed to higher household incomes and consumption levels. Off-farm income gains are also identified to be an important pathway through which MM services enhance household income, even when excluding remittances from the calculation of off-farm income. Other off-farm income sources include small businesses in trade (like retail shops, sale of forest products), transport (like motor cycle riding services for transportation of goods or humans), and handicrafts (like brick laying, mats making, clothes sewing, and carpentry services). These economic activities benefit from novel savings and money transfer opportunities through MM services. In terms of agricultural marketing, MM users sell a larger proportion of their coffee as shelled beans (a high value form iv of coffee, sold after processing) to buyers in high-value markets, instead of selling to local traders immediately after harvest. MM services also help to reduce cash constraints and facilitate quick and reliable transactions with buyers from outside local regions. We conclude that the use of MP technologies contributes to a broader inclusive and comprehensive rural development and poverty reduction, encompassing improved household income, food security, and gender equality. We also conclude that MM services can contribute to rural development through various important pathways – especially enhancing volumes of off-farm incomes earned by rural households. The observed adoption patterns suggest that MM services are socially inclusive. In terms of policy recommendations, we conclude that gender-sensitive dissemination policies for mobile phones and related technologies could broaden household income and nutrition welfare effects.
... Telecom providers with large investments in physical infrastructure are able to take greater advantage of regulatory structures and maximize their revenues, creating unfair competition between voice communication (landline or mobile) and Internet companies. VoIP, which can be viewed as an added-value service rather than a voice communication service (Cohen et al., 2005), allows telecommunications providers to include it in the costs of infrastructure development (Jussawalla, 1999;Pathak, 2005) and to use the technology to reduce costs without transferring any cost savings to the customer. Internet companies, on the other hand, do not fall within the purview of telecom regulations and are, thus, unable to take advantage of the ways in which voice communication costs and prices are determined. ...
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This manuscript discusses a theoretical competitive scenario for telecommunications services, in particular voice over Internet protocol (VoIP), and finds that the economic benefits of the current technological convergence are based on three main factors: technological advances and updates; regulation failures related to technological complexity; and consumer inability to exploit the benefits of convergence. This study begins by giving the background to voice communication in the telecommunications sector and the misunderstanding of the competitive boundaries between technologies, service providers, and usage applications generated in an unregulated sector. Second, the kinds of regulation that organizes the development and pricing of integrated or bundled services are briefly discussed and presented. Third, theoretical analysis of the competitive environment is interpreted in terms of the three factors: technological advances, regulation failure, and consumer knowledge of convergence. Results derived from these factors are presented in the context of VoIP services. Finally, the work concludes by outlining the implications for regulatory reform and the impact on competitive behavior, and describes possibilities for the future management of the technology sector.
... Higher levels of exports, conversely, speak to the advanced development of the communications industries and indicate the ability to more effectively sell services abroad. Jussawalla (1999) reports that East Asian countries are prone to developing ICTs for export. However, Fairlee (2007, 2010) do not find trade openness to be statistically significant with Internet penetration. ...
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This article analyzes the state of Internet penetration across the developing world. We examine a variety of socioeconomic, human capital, and media and technology-related measures as they relate to Internet adoption. Results demonstrate that the Internet is not only dependent on economic variables such as spendable income, costs and poverty, but also literacy, share of urban population; population growth, and old and new telecommunication measures such as telephone subscriptions, broadband subscriptions and related costs, computer and mobile phone ownership, number of telecommunication secured lines and bits generated; trade matters such as communication services exports; and political environment issues such as political and democratic openness, economic freedom and freedom of the press. Contrary to earlier research, GDP and English language are not statistically significant variables. Our findings on telecommunication industry competition and literacy run contrary to many earlier studies that find these variables to be unrelated to the Internet.
... Under such circumstances, the number of firm integrations in the converged market has grown as integration provides existing firms with easy and effective access to new target markets, and synergistic gains through the better utilization of resources and strengths. In the same context,[34]stresses that the business convergence between broadcasting and telecommunication is inevitable. This research, therefore, posits the following as hypothesis 1. ...
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This research mainly focuses on mergers and acquisitions (M&As) within the broadcasting and telecommunication industries in Korea, and examines the stock market reaction around the M&A announcement day. The abnormal change in stock price is estimated using the event-study methodology. We, in contradiction to the previous works asserting the M&As' negative effect, conclude that the M&As in these industries have a positive impact on the stock market. In addition, unrelated M&As also have a positive stock market reaction similar to related M&As, and there is no meaningful difference between M&As acquiring content firms and M&As not acquiring them.
... Economic Cooperation and Development (OECD) (Colecchia and Schreyer 2002), Britain (Dolton and Makepeace 2004), and Asia (Jussawalla 1999), to determine the impact of the ICT on economic growth. ...
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In recent years, progress in information and communication technology (ICT) has caused many structural changes such as the reorganization of economics, globalization, and trade extension, which leads to capital flows and enhancing information availability. Moreover, ICT plays a significant role in development of each economic sector, especially during liberalization process. Economists predict that economic growth is driven by investments in ICT. The purpose of this research is to investigate the effects of ICT on economic growth in Tunisia. The results indicate that there is a positive relationship between the growth rate of GDP and the index of ICT use (as measured by the number of user mobile and fixed phone lines in Tunisia).
... untries are widespread, the growth pattern remains uneven, especially among the least developed countries. This has led to the issue of the digital divide 4 , which from the perspectives of the least developed nations, shows that differences in access to ICT are even more pronounced than national income inequalities across the world (Pohjola 2003)., 1999 ) in Simmons (2000) According to the 2001 report published in the Asia and Pacific Regional Preparatory Meeting for the World Telecommunication Development 6 , the digital divide in terms of having access to ICTs is very apparent between the developed and developing countries (Table 1.1). For example, the report revealed that out of 100 ...
... No corrente mercado de telecomunicações, dinâmico e agressivo, competidores diferentes encaram um campo de batalha desigual, onde provedores de telecomunicações com altos investimentos em infraestrutura física são capazes de tirar vantagem das estruturas de regulação maximizando sua receita e criando uma competição injusta entre empresas de comunicação de voz (fixa ou móvel) e internet. O VOIP, visto como um serviço de valor agregado e não um serviço de comunicação de voz (COHEN; MATTILA; SOUTHWOOD, 2005), permite a provedores de telecom incluir em seus custos de infraestrutura o desenvolvimento (JUSSAWALLA, 1999;PATHAK, 2005) e o uso de tecnologias, para reduzir custos sem transferir nenhuma economia destes para os consumidores. Em outra visão, empresas de internet não estão ligadas com as definições das regulações de telecomunicações, tornando-se prontas para tirar vantagem dos competidores, que possuem seus custos de comunicação de voz e preços determinados. ...
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Technological convergence allowed for the carrying out of communication services, based on different technologies, assuring the same use for users and better benefits for providers. This way, both entrepreneurial and residential consumers had an increase in their choice for joint services as well as for service providers. The existing regulation does not analyze the service as a result, but as a product or technology to be authorized. Based on the literature of utilization and behavior of the consumer, this article describes and discusses a strategy of marketing used by communication opoerators, who take advantage from the inefficiency of the regulation and legislation. A theoritical analysis of the competitive environment and use of technology points out that the economic benefits from technological convergence go on due to four factors: technological progress, regulation failures, technological complexity, and lack of skill for exploring convergence benefits. The misuse of these services by telecommunication providers, given the technological convergence and integration of systems in this sector, are specifically discussed in the context of voice communication services at a long distance, utilizing VOIP, establishing proposals for defining the better use of technology which may assure a fair competitiveness for the market.
... Malaysia was among the first countries in the region to privatise its government held telephone monopoly (Jabatan Tekom Malaysia) (Jussawalla, 1999) and as a result the Malaysian telecommunications sector has become one of the most competitive in the world (Mesher and Zajac, 1997). This has resulted in affordable access for many citizens. ...
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This article reports the findings of research conducted within Malaysia Borneo. Using field interviews with small tourism enterprises (STEs) the study explored the use of the Internet by STEs, specifically, the authors sought to identify how STEs exploit the information, communication, and transactions spaces created by the Internet. This study improves knowledge on how small enterprises, specifically small tourism enterprises use and overcome typical hurdles to adopting the Internet. In contrast to previous studies in developing countries, the results show that amongst participants there is a level of Internet maturity and many enterprises view its use as the norm. Although quite a specific sample of small enterprises have been selected for this article, this article identifies lessons that may be applied to STEs generally in developing countries. Some strategies to assist STEs in developing countries to implement and maintain a web presence are suggested.
... The role of trade policy is important. For example, Jussawalla [13] claims that East-Asian nations fostered ICT production through openness and export-oriented investments. Both exports and imports may offer a channel for increased adoption and diffusion of ICT. ...
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... Furthermore, concentrating on other frameworks, such as the OECD, India, China or developing nations, the work carried out by Jussawalla (1999), Bassanini et al. (2000), Colecchia and Schreyer (2002), Wong (2002), Meng and Li (2002), Vu (2005, 2007) and Sridhar and Sridhar (2007) are of particular importance. ...
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... The role of trade policy is important. For example, Jussawalla (1999) claims that East Asian nations fostered ICT production through openness and export-oriented investments. Both exports and imports may offer a channel for increased adoption and diffusion of ICT. ...
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... The role of trade policy is important. For example, Jussawalla (1999) claims that East Asian nations fostered ICT production through openness and export-oriented investments. Both exports and imports may offer a channel for increased adoption and diffusion of ICT. ...
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The combination of new and advancing communication technologies and changing regulatory philosophies make this an opportune time to seriously examine once again the economics of media industries and the implications of a better understanding of media economics for communication policy. Many of the issues that will have to be addressed by economists and policymakers in the future relate to the development of multimedia firms and multimedia services. This article briefly discusses the historical relationship between communication policy and the economic study of media industries, and identifies multimedia-related policy questions that will have to be addressed with the tools of economic analysis in the future. The articles that follow in this volume are then discussed with respect to these policy questions.
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